Which of the Following Is Normally Viewed as an Adjustment

question 73

Multiple Choice

Which of the following is normally viewed as an adjustment to the principal of an estate?

• A) Ordinary repair expenses.
• B) Insurance expenses.
• C) Utility expenses.
• D) Major repairs to rental property.
• E) Property taxes.

---

Definitions:

Liability

A financial obligation or debt that an entity is required to pay to another party, often arising from past transactions or events.

Revenue

The total amount of money generated by a company from its normal business operations, before any deductions are made.

Operating Cash Flows

Money generated from a company's regular business operations, indicating its ability to cover expenses and invest.

Fixed Assets

Long-term tangible assets such as buildings, machinery, and equipment that a company uses in its operations and is not expected to consume or convert into cash within one year.